South Atlantic Bank Announces Solid Growth in Year-End Earnings

Net Income Grows Nearly 22 Percent

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Mar 06, 2015, 09:15 ET

MYRTLE BEACH, S.C., March 6, 2015 /PRNewswire/ -- South Atlantic Bancshares, Inc. (the company), parent of South Atlantic Bank, today reported net income of $2,004,218 or $0.58 per diluted share for the year ended December 31, 2014, an increase of 21.9 percent when compared to the $1,644,650 or $0.49 reported a year ago. At year-end 2014, the bank achieved its fourth consecutive yearly profit.

"It was a busy and productive year at South Atlantic Bank," said K. Wayne Wicker, chairman of the board and chief executive officer. "During 2014, we moved into our new Pawleys Island office, opened a full service location in Mount Pleasant, and announced plans for a new office in North Myrtle Beach. We further developed our infrastructure by filling key positions in the retail sales, credit, and compliance areas of the bank. Additionally, we implemented a management training program to ensure we have the talent on hand to fill staffing needs as we continue to grow.

"Our success in 2014 – namely double digit earnings growth along with double digit growth in the balance sheet – can be attributed directly to the expansion of our geographic footprint," Wicker said. "Our market share continues to increase due to the strong efforts put forth by our branch staff and lending personnel in delivering South Atlantic Bank's exemplary customer service," he said.

Total deposits grew 14.4 percent, from $285.5 million reported at December 31, 2013, to $326.6 million at December 31, 2014. Total loans grew 20.4 percent during 2014, from $218.2 million at December 31, 2013 to $262.6 million at December 31, 2014. Total assets grew 14.2 percent, from $318.0 million at December 31, 2013, to $363.3 million at December 31, 2014.

South Atlantic Bank's credit quality continues to be strong with net charge-offs to total average assets of 0.07 percent, which compares favorably to state and national figures. The bank has now recorded three consecutive quarters with zero past dues, a significant accomplishment based on a portfolio in excess of $260 million.

The bank's capital ratios continue to exceed regulatory requirements. The company's already strong capital position was further bolstered by the completion of the first phase of a private placement offering of its common stock in 2014. The company anticipates completing the second phase by the end of the first quarter 2015. Proceeds from the raise will be used for general corporate purposes and to support the growth and capital position of the bank.

About South Atlantic Bank
South Atlantic Bank is a $359.2 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, and has additional offices in North Myrtle Beach, Murrells Inlet, Pawleys Island, Georgetown, and Mount Pleasant, South Carolina. South Atlantic Bank offers a wide variety of services for businesses and consumers, including South Atlantic Bank goMobile, its mobile banking app. The bank also offers internet banking, no-fee ATM access, checking, CD, and money market accounts, merchant services, mortgage loans, remote deposit capture, and more.

For more information, visit SouthAtlanticBank.com.

Member FDIC

South Atlantic Bank
Selected Financial Highlights

	For the	For the	For the	For the	For the
	Twelve Months Ended	Nine Months Ended	Six Months Ended	Three Months Ended	Twelve Months Ended
	December 31, 2014	September 30, 2014	June 30, 2014	March 31, 2014	December 31, 2013
*Year-to-Date Balances (In Thousands)*
Total assets	$ 363,348	$ 338,097	$ 353,406	$ 330,650	$ 318,057
Investment securities	52,607	71,023	71,539	67,846	73,727
Loans, net of unearned income (total loans)	262,646	239,402	245,585	232,091	218,174
Deposits	326,594	308,263	325,793	298,363	285,519
Shareholders' equity	32,242	27,937	26,740	25,653	24,141

*Average Balances (In Thousands)*
Total assets	$ 341,288	$ 339,879	$ 332,623	$ 323,697	$ 307,746
Earning assets	318,590	308,869	309,948	301,025	281,908
Investment securities	67,306	70,698	71,002	70,871	69,880
Loans, net of unearned income	239,797	236,225	233,804	226,844	199,817
Deposits	308,929	307,397	298,140	287,413	281,306
Shareholders' equity	26,925	26,342	25,763	25,063	24,904

*Earnings Breakdown (In Thousands)*
Total interest income	$ 13,012	$ 9,743	$ 6,434	$ 3,143	$ 11,291
Total interest expense	1,188	910	635	314	1,311
Net interest income	11,825	8,833	5,799	2,829	9,980
Total noninterest income	1,705	1,196	709	297	2,146
Total noninterest expense	10,618	7,851	5,146	2,544	9,305
Provision for loan losses	475	400	325	150	730
Income before taxes	2,437	1,778	1,038	432	2,092
Taxes	433	295	159	57	447
Net income	2,004	1,482	879	375	1,645
Diluted earnings per share	0.58	0.44	0.26	0.16	0.49

*Selected % Increases*	*(Compared to the same period a year ago)*
Total assets	14.24%	8.41%	8.34%	11.85%	11.60%
Total interest earning assets	14.04%	11.37%	8.99%	11.98%	11.93%
Total loans	20.38%	20.74%	21.16%	17.26%	14.84%
Total deposits	14.39%	7.55%	8.08%	10.62%	10.10%
Interest income	15.24%	17.11%	16.96%	17.15%	12.89%
Interest expense	(9.40)%	(9.25)%	(6.85)%	(4.89)%	(19.09)%
Noninterest income	(20.54)%	(20.56)%	(34.99)%	(19.50)%	(20.62)%
Noninterest expense	14.11%	24.03%	24.87%	30.52%	15.40%
Net income	21.90%	9.91%	1.74%	1.50%	23.50%

*Selected Ratios*	*(Compared to the same period a year ago)*
Return on assets	0.55%	0.58%	0.53%	0.47%	0.53%
Return on equity	7.44%	7.52%	6.88%	6.08%	6.60%
Interest income to total average assets	3.81%	3.83%	3.90%	3.94%	3.67%
Interest expense to total average assets	0.35%	0.36%	0.38%	0.39%	0.43%
Net interest income to total average assets	3.46%	3.47%	3.52%	3.54%	3.24%
Loan loss reserve to total loans	1.00%	1.11%	1.07%	1.10%	1.10%
Nonperforming assets to total average assets	0.13%	0.09%	0.21%	0.23%	0.13%
Net charge-offs to total average assets	0.07%	0.04%	0.03%	0.00%	0.21%
Net interest margin	3.79%	3.81%	3.85%	3.87%	3.54%